An equipment rental business strategy has several components. It should include information on how you intend to make your company successful. Working through revenue streams, aligning with business regulations, establishing what new equipment you aim to offer, and more are just a few of them.
It takes a lot of effort to start and expand a business, therefore it’s critical to establish a strong foundation. In order to succeed, there are a few must-haves to include in your equipment rental business plan. With the ever-increasing demand for equipment rental businesses, it is very important for business entrepreneurs to know the business model of the equipment rental business as well as the industry.
RentCubo, one of the best equipment rental software development companies, brings you an exclusive blog that describes the business model of the equipment rental industry. So read along and build the best equipment rental business and grow yourself in the equipment rental industry.
About the Equipment Rental Industry
Cranes, earthmovers, bulldozers, lifters, excavators, diggers, and other small rental equipment are provided by the equipment rental sector for a variety of applications including construction, transportation, mining, oil and gas machinery, and forestry machinery. It also handles light and heavy equipment logistics and warehousing. Other industry operations include providing contractors with machinery operators, as well as equipment repair and maintenance.
With current revenues of $37.43 billion in 2020-21 and expected revenues of $42.6 billion in 2024, the equipment rental industry is a substantial contributor to the US economy. This estimate includes short-term rental and leasing initiatives, showing that overall equipment rental activities are expected to rise.
Business Model of Equipment Rental Business
Identifying revenue sources is one of the most crucial aspects of developing a company strategy–it will make or break your plan. What are your plans for generating revenue for your heavy equipment rental company? There are just two alternatives available.
- Physical store – Clearly, you’ll need somewhere to store the equipment you’ll be renting out to contractors. If you’re not sure where to open a store, look into the demographics of the neighborhood. Also, have a look at your competitors. Will there be enough business there for you to expand?
- Virtual online presence – You’ll want to include an internet platform in your equipment rental company plan because of the ongoing advancement of technology, or you’ll be left behind. Make a strategy for how you’ll succeed online. One option is to create a website. Getting on the Internet will almost certainly enhance your bottom line, whether you use it for online transactions or simply to show off your extensive inventory. Remember to optimize for local SEO as well. Given that your consumers are almost certainly all local, this is an important aspect of your web presence.
Legalities of the Business:
You can’t write an equipment rental company plan without mentioning your legal, tax, and insurance preparations. You could look at a variety of company types. When creating a small rental firm, limited liability may be a good fit. However, before making a decision, consult with a business mentor or accountant.
Insurance is required to keep your business open if a consumer sues you for injury or property damage. A few types of insurance to think about having in your plan are: General liability insurance, workers’ compensation, property insurance, and commercial vehicle insurance
Maintenance of Equipment:
After receiving equipment back from your clients, your company plan should include an efficient maintenance and repair method that you can implement. Contractors may return your equipment with damaged or missing parts in specific instances. Don’t forget to set up a preventive maintenance routine to ensure that your equipment keeps working at its best.
If you’re just getting started and know your way around the equipment, doing your own maintenance can save you time and money. You might either hire an in-house mechanic or support a local firm that specializes in equipment repairs. Keep in mind that in-house mechanics may be more cost-effective in the long run.
A marketing strategy is critical for a company’s growth, and your rental equipment business plan should include a brief summary of your marketing approach. Here are two things to think about:
- Social media platforms – Brand recognition may be increased using social media sites such as Facebook and Instagram. You can then upload and share images, customer tales, and blog pieces that you’ve written. This fosters a sense of connection and trust among new and existing clients.
- Advertisement – Consider digital ads on Facebook and Google, as well as print ads in trade magazines, to promote your company. If you’re unsure where to begin with Facebook advertising or even in-app advertising, we can help.
Get Multipurpose Equipment:
When it comes to purchasing equipment for your business, don’t make educated guesses. Potential investors in your company want to know that you’ve done your homework and are committed to providing the greatest service possible to your neighborhood. Examine your competition and learn what your potential clients require to determine what equipment you should get.
After you’ve figured out what’s important to them, make it clear that you’ll be focusing on quality rather than quantity. It’s preferable to have a small fleet of high-quality equipment than a huge fleet of unreliable and easily broken machines.
If you’ve followed this advice to the letter, you should have a decent notion of what you need to do to make your new rental business a huge success. But don’t let it all go to your head! Put everything together in a rental business plan — a rental business strategy. A business strategy is necessary for your company’s success.
Equipment rental software can be used to optimize procedures, coordinate operations, manage assets, and calculate depreciation for businesses. This software suite also allows you to assign equipment to employees, schedule maintenance, and perform back-office activities such as accounting and accountancy.
When it comes to managing operations, many companies find it challenging to keep track of their equipment. The scenario grows considerably worse when a piece of equipment is carried from one job site to another or multiple additional job sites. It can take a long time to figure out which assets are allotted to your staff.
We provide organizations with a solid asset management solution that is modern, simple, and customizable to their needs at RentTools. Our equipment rental software is a back-office solution for tracking and managing valuable assets for business owners, CFOs, bookkeepers, and accountants. RentTools presents the benefits and features of equipment rental software and how to select the finest equipment rental software for your company in this unique blog.
Benefits of Equipment Rental Software
You’ll be in charge of asset inventory, location, people, service, and maintenance for an equipment operator. Whether you need fleet management or only want to maintain construction equipment, you can utilize an all-in-one software solution to streamline your operations. Our rental software helps you manage your equipment by keeping track of key information like asset upkeep, invoicing, and certificates.
With equipment rental software, you can reduce equipment downtime in a variety of ways. Our rental software system’s maintenance management capabilities may track metrics including overall utilization, depreciation, repair plans, and maintenance dates.
These maintenance records are used to determine whether predictive or preventative maintenance is necessary. Predictive maintenance can be done while the unit is running to identify and address any issues. Meanwhile, preventative maintenance is carried out on the equipment on a regular basis to prevent problems from arising.
A unified software solution enhances openness and insight in your business by delivering a consolidated data picture of your assets. This transparency allows you to anticipate demands in your firm and improves team collaboration. In rental operations, for example, the finance department requires visibility into how assets are performing and depreciating over time.
To minimize downtime and maximize return on investment, it’s critical to determine if your assets are in use (ROI). Equipment management software improves organization and transparency in scheduling. This allows you to focus on making the most of the tools you already have and enhancing overall output.
When you utilize an ordered calendar, it’s simple to see which assets are in use and which aren’t. You can also allocate chores by glancing at the schedule and identifying the individual in charge of a certain piece of equipment.
Features of Equipment Rental Software
The ability of a system to suit a variety of needs is referred to as flexibility. It also relates to the design’s consistency, which allows it to be customized for your store. As you may know, no two rental organizations are identical, and even within the same types of stores, each management department has its own ideas about how to run a business.
It might be incredibly damaging to your business if your rental system freezes or worse, crashes in the middle of a customer request or other basic function. It’s all about reputation, and there’s only one way to get it. Check to see if the vendor has a prominent presence at major rental trade shows or conventions.
Businesses may have a broad idea of what equipment they possess or what equipment they are currently renting out. However, many of these companies may not have access to real-time asset data. As a result, it’s vital to have an up-to-date system for tracking incoming and existing equipment.
Customer service must be included in your rental management system. Many software businesses provide monthly membership services that include, among other things, toll-free telephone support, free app upgrades, and access to a user forum.
Whether you have a middle-market or a fast-growing small firm, our equipment management system offers a smarter way to track equipment. The powerful cloud-based platform of RentTool maintains and records asset paperwork for easy access.
Determine the availability, location, and maintenance requirements of your equipment using a computer or a mobile app. You can get rid of cluttering spreadsheets while also improving data accuracy. Our solution provides a single source of asset information to improve compliance and audit readiness.
As we approach 2022, equipment dealers and rental companies will undoubtedly be looking forward to studying and adopting various methods and technologies in rental software to ensure the smooth functioning of their businesses. The equipment rental sector is more focused than ever on digital transformation hot themes and trends. The business is changing rapidly and adopting new platforms to boost productivity, efficiency, and performance, but what new opportunities can dealers expect in the present year?
Equipment Rental Software is a solution tailored to the equipment rental and distribution industry. Equipment Rental Software improves efficiency in the rental department by improving the operations of equipment rental, inspection, and maintenance, among other things. Unlike traditional equipment dealer management systems, equipment rental software is designed on cutting-edge technology with cutting-edge features that will revolutionize the way you run your business.
Every year, the impact of technology and data on the Equipment Rental Industry grows. Dealers and rental firms are using equipment rental management software to improve their rental operations in order to keep up with industry development. New technologies and platforms are revolutionizing the sector, and we anticipate a slew of technological advancements that will have an impact on the rental market by 2022. Here are the top five trends to watch in 2022.
Today, big data is a large part of the industry, but it appears that many dealers are battling with information overload rather than using their data to its full potential. Companies that do not use data to improve decision-making, operational efficiency, and customer service will fall behind the competition in a competitive sector like the equipment industry.
Rental rates and equipment usage are two major ways that data will be used in the future. As enterprises attempt to make the rental experience easier and more flexible for clients, dynamic rental rates supplied through systems that can adjust rates based on demand from changes in season or the market will be increasingly popular. Furthermore, systems that automatically track and calculate the amount of time and money spent on each specific machine would be incredibly valuable to dealers and distributors.
Mobile Inspection Applications.
In today’s environment, mobile usage has far overtaken that of desktops. There will be no difference in the equipment rental industry in 2022 since we expect mobile capabilities to play a significant role. Mobile inspection applications will be used by equipment distributors and dealers to streamline yard management activities such as equipment check-ins and check-outs, issuing service orders, making reports, and more. In 2022, mobile inspection applications will advance much further, altering how businesses communicate and collaborate. Yard management and rental inspections will benefit from unique features like photo capture and annotation capabilities, which will keep users informed, up-to-date, and on the same page.
Telematics and Fleet Management
In 2022, telematics in the rental industry will be a prominent trend. Dealers and distributors are constantly seeking new ways to improve rental fleet uptime while reducing rental department equipment downtime. In the coming years, we believe telematics technology will be one of the most important factors in increasing the rental fleet’s productivity.
Telematics will be used by the equipment rental business to track data about machines such as locations, temperatures, and more. Machine telematics will also aid with upkeep and maintenance, allowing businesses to be more proactive in repairing and maintaining their assets. It will be critical to have a thorough understanding of each piece of equipment in the rental fleet, not just for safety but also to extend the life of the devices. Many companies in the industry have increased their rental fleets to hundreds of units or more, thus telematics will be critical in 2022 to maintain equipment quality.
Businesses may have a general sense of what equipment they own or what is currently hired out. However, many firms may not have real-time data on their assets. To track incoming and exiting equipment, an up-to-date system is required that shows what’s ready, what’s rented, and when it’s due to be returned. The backbone of equipment rental system software is having a solid inventory tracking system.
Centralized Customer Management Software
Equipment rental buyers must have an effective system that maintains customer information from a centralized database in order to give a level of service that makes customers feel appreciated. The capacity to handle client data (e.g., name, address, email addresses), as well as transaction and invoicing information, was the purchasers’ top feature requirement (e.g, cost of what they rented and rental agreements)
As we approach the year 2022, equipment distribution and rental companies must equip their dealerships with cutting-edge technology in order to provide diligent and excellent service to their consumers. Cutting-edge equipment dealer management software can take advantage of your equipment and customer data, install mobile inspection apps, and use telematics to manage your fleet.